The government has extended cash-strapped Denel’s guarantee to R3.43bn over a five-year period ending in September 2023. The arms manufacturer confirmed it had received the extension in September. Its original government guarantee of R2.43bn was meant to expire at the end of September. Denel had asked for a further guarantee and a cash injection to recapitalise the business. It had been waiting for the medium-term budget policy statement to hear if it was going to receive anything. The company said its debt portfolio consisted of government guaranteed commercial paper totalling R2.864bn, with an unsecured note of R290m. “The board continues to support Denel in restoring the confidence of key stakeholders, including financial markets, in the company and the current leadership,” it said. Denel was not allocated any funds by finance minister Tito Mboweni during his maiden medium-term budget policy statement last week. According to the budget policy statement, Denel still had some guara...

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